Fact Pattern 37-1A (Questions A3-A4 Apply)

question 13

Multiple Choice

Fact Pattern 37-1A (Questions A3-A4 apply)
Desi starts up eSites,an Internet service,and leases office space in a building owned by Fred.The lease requires Desi to pay Fred a base rental of $1,250,plus 10 percent of eSites' profits,each month.The term is two years.Desi hires Gwen to work at eSites' tech support desk at an hourly wage of $12.50,plus a commis?sion of 10 percent of the prof?its.The term is also two years.
-Refer to Fact Pattern 37-1A.Desi and Fred are

• A)not partners,because Fred does not have an ownership interest or manage?ment rights in eSites.
• B)not partners,because the lease includes a "base rental."
• C)not partners,because the rent includes only 10 percent of the profits.
• D)partners in a partnership for two years.

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Definitions:

Benefited

Received an advantage, improvement, or gain from something.

Reciprocity Norms

Social norms that dictate individuals should return benefits for benefits received, fostering cooperation and social exchange.

Human Cultures

The shared customs, arts, social institutions, achievements, and beliefs of groups of people.

Agrarian

Pertaining to agriculture or the cultivation of land, often used to describe societies primarily focused on farming.